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GT Advanced Technologies (GT Advanced Technologies) ROE % : -133.50% (As of Jun. 2014)


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What is GT Advanced Technologies ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. GT Advanced Technologies's annualized net income for the quarter that ended in Jun. 2014 was $-345.5 Mil. GT Advanced Technologies's average Total Stockholders Equity over the quarter that ended in Jun. 2014 was $258.8 Mil. Therefore, GT Advanced Technologies's annualized ROE % for the quarter that ended in Jun. 2014 was -133.50%.

The historical rank and industry rank for GT Advanced Technologies's ROE % or its related term are showing as below:

GTAT's ROE % is not ranked *
in the Semiconductors industry.
Industry Median: 4.49
* Ranked among companies with meaningful ROE % only.

GT Advanced Technologies ROE % Historical Data

The historical data trend for GT Advanced Technologies's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

GT Advanced Technologies ROE % Chart

GT Advanced Technologies Annual Data
Trend Mar04 Mar05 Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Dec13
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 101.38 66.89 91.75 68.75 -24.94

GT Advanced Technologies Quarterly Data
Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.73 -63.61 -54.65 -52.22 -133.50

Competitive Comparison of GT Advanced Technologies's ROE %

For the Semiconductors subindustry, GT Advanced Technologies's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


GT Advanced Technologies's ROE % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, GT Advanced Technologies's ROE % distribution charts can be found below:

* The bar in red indicates where GT Advanced Technologies's ROE % falls into.



GT Advanced Technologies ROE % Calculation

GT Advanced Technologies's annualized ROE % for the fiscal year that ended in Dec. 2013 is calculated as

ROE %=Net Income (A: Dec. 2013 )/( (Total Stockholders Equity (A: Mar. 2012 )+Total Stockholders Equity (A: Dec. 2013 ))/ count )
=-82.802/( (331.554+332.405)/ 2 )
=-82.802/331.9795
=-24.94 %

GT Advanced Technologies's annualized ROE % for the quarter that ended in Jun. 2014 is calculated as

ROE %=Net Income (Q: Jun. 2014 )/( (Total Stockholders Equity (Q: Mar. 2014 )+Total Stockholders Equity (Q: Jun. 2014 ))/ count )
=-345.524/( (301.824+215.829)/ 2 )
=-345.524/258.8265
=-133.50 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Jun. 2014) net income data. ROE % is displayed in the 30-year financial page.


GT Advanced Technologies  (OTCPK:GTAT) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Jun. 2014 )
=Net Income/Total Stockholders Equity
=-345.524/258.8265
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-345.524 / 232)*(232 / 1457.558)*(1457.558 / 258.8265)
=Net Margin %*Asset Turnover*Equity Multiplier
=-148.93 %*0.1592*5.6314
=ROA %*Equity Multiplier
=-23.71 %*5.6314
=-133.50 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Jun. 2014 )
=Net Income/Total Stockholders Equity
=-345.524/258.8265
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-345.524 / -378.328) * (-378.328 / -326.748) * (-326.748 / 232) * (232 / 1457.558) * (1457.558 / 258.8265)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9133 * 1.1579 * -140.84 % * 0.1592 * 5.6314
=-133.50 %

Note: The net income data used here is four times the quarterly (Jun. 2014) net income data. The Revenue data used here is four times the quarterly (Jun. 2014) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


GT Advanced Technologies ROE % Related Terms

Thank you for viewing the detailed overview of GT Advanced Technologies's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


GT Advanced Technologies (GT Advanced Technologies) Business Description

Traded in Other Exchanges
N/A
Address
243 Daniel Webster Highway, Merrimack, NH, USA, 03054
GT Advanced Technologies Inc is a diversified technology company producing advanced materials and equipment for the global consumer electronics, power electronics, solar and LED industries. It operates the company as one business unit comprised of three business segments, sapphire business, polysilicon business and photovoltaic, or PV, business. the company's principal products include Polysilicon Technologies and Equipment, Silicon Crystal Growth Equipment, Sapphire Crystal Growth Equipment, Advanced Sapphire Material, Silicon Carbide Crystal Growth Equipment. The company generates the majority of its revenue from polysilicon business.
Executives
Ray John J. Iii director C/O GREYLOCK PARTNERS, LLC, 780 FIFTH AVENUE, NAPLES FL 34102
Richard E Newsted director C/O GT ADVANCED TECHNOLOGIES INC, 243 DANIEL WEBSTER HIGHWAY, MERRIMACK NH 03054
Thomas Gutierrez director, officer: President and CEO C/O XERIUM TECHNOLOGIES, INC., ONE TECHNOLOGY DRIVE, WESTBOROUGH MA 01581
Matthew E Massengill director C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Noel G Watson director C/O JACOBS ENGINEERING GROUP INC, 1111 S ARROYO PKWY, PASADENA CA 91105
John Michal Conaway director QUANTA SERVICES, INC., 2800 POST OAK BLVD., SUITE 2600, HOUSTON TX 77056-6175
Kathleen A Cote director 12061 BLUEMONT WAY, RESTON VA 20190
Thomas Jr Wroe director
Robert E Switz director 13625 TECHNOLOGY DRIVE, EDEN PRAIRIE MN 55344
Fmr Llc other: Edward C. Johnson 3d 245 SUMMER STREET, BOSTON MA 02210
John Granara officer: VP Finance, Controller, CAO A123 SYSTEMS INC. ARSENAL ON THE CHARLES, 321 ARSENAL STREET, WATERTOWN MA 02472
Mary L Petrovich director
David C Gray officer: Chief Strategy/New Bus.Officer C/O GT SOLAR INTERNATIONAL, INC., 243 DANIEL WEBSTER HIGHWAY, MERRIMACK NH 03054
Cheryl A Diuguid officer: VP, GM, Sapphire Materials/Eq. C/O XERIUM TECHNOLOGIES, INC., ONE TECHNOLOGY DRIVE, WESTBOROUGH MA 01581
Fusen Ernie Chen director 1005 VIRGINIA DRIVE, FORT WASHINGTON PA 19034

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